A Simple Way to Save Thousands on Your Mortgage Charges

How many times do you check you restaurant bill? If not often, I would advise you to do it more, especially when dining on your overseas vacations. Still, much more Americans check their restaurants bill, than the number of homebuyers, who check the charges for their mortgages.

There are two popular misconceptions about the mortgage surcharges. First ? the charges are all the same because of the competition. Second ? there is nothing we can do about it, so why bother?

They are both wrong. The charges vary, sometimes within the same company depending on who their customer is. And yes, you can reduce those charges substantially just by asking about them.

There us an old story about a waiter, who presents unreasonably high bill at the end of a meal. His customer asks very politely to see the itemization of the charges. He goes over the items with the waiter one by one. Salad, yes, we had salad. Steak, yes, we had it. What is 'successful' for $95? I don't remember ordering it. Shrugging his shoulders the waiter crosses the item out from the bill: "Most of the time I am successful with that one, but sometimes I am not".

You will be surprised how often this old joke is played on the unsuspecting customers at the mortgage closings. You can say: "But I always check the charges myself. There was nothing like that on my list".

Yeah, you think they would be stupid enough to put the charges in the open where you can check them? No, the charges are buried in the computations of the interest and principal payments. Those computations formulas are among the most closely guarded secrets of the lenders.

The lenders even have a special abbreviation for such charges, P.O.C., which stands for Paid Outside of Closing. Those charges can be for anything, from a finder's fee to your broker (or whoever referred you to them) to different sorts of mortgage insurance, which you are required to pay for, but it benefits the lender.

They will fight you tooth and nail, if you ask them to disclose that. Their most common answer to you would be: "Oh, we don't know the details ourselves. Our computer does the computations. It is our company's private information."

The only way for you to know exactly what the lenders are charging you is to compute the monthly payments independently. They are trying to make this task as difficult as possible for you. They use complicated allocations, where they often change the amounts that go to the interest and to the principal. Why? Because they don't want you to know.

So you might be thinking that after a few years your monthly payments have reduced your mortgage principal, when in reality the principal changed little and all the money went to cover interest payments and a lot of other funny charges, about which you never have been told.

How can you get this information? It can be yours for the asking. Of course you can start getting answers like: "It is not in our computer. We need to order an additional report for that. I don't have this information."

You can continue to deal with this people, if you wish. Just know that they are lying. And if they are lying to you now, what will prevent them to do the same later, when you are at their mercy as their customer.

To learn more about investment advise and retirement planning visit Money Management Forum at Wise-consumer.net, also Surveyor

---

Home Equity Line of Credit ? Great Idea for Rainy Day Emergencies

Most Americans tend to live on a paycheck-to-paycheck basis, and... Read More

Refinance Your Home Mortgage Online

The largest financial obligation most people ever take on couldn't... Read More

Commercially Viable Commercial Mortgages

Commercial mortgages are similar to residential mortgages. Usually taken by... Read More

Mortgage Prepayment Penalties - Just Say No

One of the most common terms found in a new... Read More

Home or Investment Property Equity: Be Sure the Bank Gives You All that You Deserve

Home equity is your own personal money machine. If you... Read More

Home Mortgages: Think Before You Borrow

In today's overheated housing market, lenders are making it easier... Read More

Some of the Available Loan Types

There are many mortgage products available on the market today.... Read More

Home Equity Loans Online

If you are in the market for a home equity... Read More

Mortgage Refinancing Companies -- Choosing The Right One

Searching for a mortgage refinance company can be a daunting... Read More

How easy is it to get a Commercial Mortgage in the UK?

As is the case when applying for any mortgage, be... Read More

Bad Credit Mortgage Loans ? How To Get Approved

Persistence is the key working toward getting approved for a... Read More

Thinking About Refinancing Your Loan?

Refinancing your home or property is a big decision that... Read More

Bad Credit Home Financing - Get The Mortgage Loan You Want Even With Poor Credit

Having poor credit alone cannot hold you back from getting... Read More

Home Equity Loans ? Research Your Lender Carefully

Real estate prices are rising across the country, and Americans... Read More

How Not To Be Ripped Off By Mortgage Brokers

One of the things that bothers me about the mortgage... Read More

Reverse Mortgages: When Is One Right For You?

How do you know if a reverse mortgage is right... Read More

Home Equity Loans Can Provide Cash in a Hurry

Think About the Long Term. Estimate how long you expect... Read More

Selling Your Business Note

Before I go further, let me ask a question- if... Read More

Refinancing After Bankruptcy

Refinancing after a bankruptcy can seem like an especially difficult... Read More

Home Equity Loan - Is It For You?

A Home equity loan has become an easy way to... Read More

Taking the Time to Find the Best Home Improvement Loans

The best home improvement loans usually aren't going to be... Read More

Home Mortgages: Does a No-closing-cost Loan Make Sense for You?

I have heard a number of radio ads and have... Read More

Borrow on a Budget: Getting the Cheapest Home Improvement Loans

Getting the cheapest home improvement loans isn't always easy. It... Read More

Mortgage Debt Elimination

The prospect of mortgage debt elimination is something that many... Read More

Home Equity Line of Credit ? Great for Remodeling Projects

Many homeowners are lucky enough to find a house that... Read More

Mortgage Glossary of Terms

A brief list of some of the most common Mortgage... Read More

Sell Your Home and Invest at the Same Time

I continue to see the same For Sale signs in... Read More

The Best Way To Get The Right Mortgage

Are you thinking of buying a home? If so, then... Read More

Securing a US Commercial Mortgage

What's the most efficient way to secure a US Commercial... Read More

A Home Loan Can Help You Own Your Dream Home

Owning your dream home need not just be a dream.... Read More

Uk House Price Increases Take A Summer Holiday

Property website Rightmove has released its latest house price index... Read More

Mortgages After Bankruptcy: Easier Than You Would Expect

Give yourself time to rebound. Whether you had to turn... Read More

Guide to Home Equity Loans

Here is a useful guide to home equity loans. A... Read More